Source Code Capital Portfolio Company Qudian Successfully Lists on the New York Stock Exchange | Live Photo Report
On the morning of October 18, 2017, U.S. time, Qudian Inc. (NYSE: QD) — a Source Code Capital portfolio company and China's leading fintech firm — officially listed on the New York Stock Exchange, becoming the first overseas-listed stock in China's consumer finance installment sector. Qudian priced its IPO at $24 per ADS (American Depositary Share), offering 37.5 million shares. Before the underwriters exercised their over-allotment option (greenshoe), the IPO size
Qudian Rings the Bell at the NYSE
On the morning of October 18, 2017, U.S. time, Qudian Inc. (NYSE: QD) — a Source Code Capital portfolio company and one of China's leading fintech firms — officially listed on the New York Stock Exchange, becoming the first Chinese consumer finance and installment-lending company to go public overseas. Qudian priced its IPO at $24 per ADS, offering 37.5 million American depositary shares. Before the underwriters exercised their over-allotment option (greenshoe), the offering had already raised $900 million, giving the company a market capitalization exceeding $7.9 billion, or roughly RMB 52 billion. Under the over-allotment option granted to underwriters, they could purchase up to an additional 5.625 million ADSs within 30 days of the final prospectus filing. Qudian's IPO ranked as the fourth-largest U.S. listing globally so far that year, and the largest by a Chinese company in the United States.
Group photo outside the NYSE
Founded in April 2014, Qudian has accumulated 47.9 million registered users and stands as one of China's leaders in online consumer finance services. Over the past three years, the company has leveraged big data to drive technological innovation, using cutting-edge technology to offer online credit products. Its mission is to serve creditworthy Chinese consumers who lack access to traditional financial channels, providing them with both product installment plans and cash installment services.
Qudian team photo
Data shows that in the twelve months ended June 30, 2017, the group's transaction volume exceeded RMB 60 billion. In the first half of 2017, Qudian's total revenue reached RMB 1.833 billion, surging 393% — nearly fourfold — from RMB 372 million in the same period last year. Net profit hit RMB 974 million, up 698% — nearly seven times — from RMB 122 million a year earlier. The first-half 2017 profit alone already surpassed the full-year 2016 total, making Qudian China's top provider of small-denomination cash credit loans. By mid-2017, the group had 47.9 million registered users. Average monthly active users in Q2 2017 reached 28.9 million, with 5.588 million active users in the quarter, 20.794 million transactions, and an 85.6% repeat loan rate. The historical single-day peak hit 365,000 loans disbursed — a testament to robust growth.
Qudian founder and CEO Min Luo with Yi Cao, founding partner of Source Code Capital
As one of Qudian's earliest investors, Yi Cao, founding partner of Source Code Capital, said: "My heartfelt congratulations to Qudian on its successful NYSE listing, and to Min Luo on this important milestone! This moment didn't come easily — it's the result of more than a thousand Qudian colleagues working day and night under Min's leadership. It carries far-reaching, landmark significance for both Qudian and China's fintech industry as a whole. Source Code Capital is delighted to have been involved from start to finish, contributing what value we could and growing alongside the company. The power of technology will lead innovation and transformation in finance, enabling financial services that are truly 'anytime,' 'anywhere,' 'tailor-made,' and 'inclusive.' In the new normal of economic development, fintech will play a lasting, genuine, and massive role in promoting small and micro enterprise financing, stimulating consumption, providing insurance protection, advancing capital markets, and supporting supply-side structural reforms like cutting overcapacity, reducing inventory, deleveraging, lowering costs, and strengthening weak links!"
Opening bell ceremony
April 2014: Qudian raised several million dollars in Series A funding from BlueRun Ventures. August 2014: Qudian closed an A+ round of tens of millions of dollars, jointly invested by Source Code Capital, BlueRun Ventures, and other prominent VC firms. December 2014: Qudian completed a Series C round of tens of millions of dollars. April 2015: Qudian announced approximately $100 million in Series D funding, led by Kunlun Tech, with existing shareholders Source Code Capital and BlueRun Ventures participating. August 2015: Qudian raised approximately $200 million in Series E funding, led by Ant Group, with all existing shareholders — Source Code Capital, Kunlun Tech, and BlueRun Ventures — following on. November 2015: "Lai Fenqi" officially launched. July 2016: "Qu Fenqi" was upgraded to Qudian Group. July 2016: Qudian completed the first tranche of its pre-IPO series, raising approximately RMB 3 billion, co-led by Phoenix Xiangrui and Lianluo Interactive, with existing shareholders participating.
Source Code Capital team photo
From left: Xingshi Wang, Jian Wu, Yi Cao, Qingran Zhong
According to the 2016 Fintech 100 report by KPMG and Australian fintech venture firm H2 Ventures, Qudian ranked second among the world's leading fintech companies (Ant Group took first place). Per an Oliver Wyman report, by both total 2016 transaction volume and active user base, Qudian ranked first among China's online small-denomination cash credit loan service providers.
Source Code Capital (SourceCode Capital) was founded in 2014, specializing in information technology investments. It currently manages $750 million and RMB 3 billion. Its limited partner base comprises more than 20 new-economy leaders forming an industrial capital investor alliance called "Ma Hui." Industrial capital will play an increasingly important role in the new-economy ecosystem, and Source Code Capital is committed to efficiently combining industrial and financial capital to jointly drive the growth of innovative enterprises.
Since its 2014 founding, Source Code Capital has focused on "Internet Plus" — including fintech, industrial internet, and service internet — as well as "AI Plus" and "Global Plus." Representative portfolio companies include: Qudian (Qu Fenqi), Geshang Wealth, Yinker, Zhirong Group (Yongqianbao), Suishouji, and Cijinrong in fintech; Yijiupi, Yimi Dida, Xiaoguan Technology, Baibu, and RuiGu in industrial internet; Meituan, Lianjia, MOGU, and Kanjia in service e-commerce; Toutiao and CHJ Automotive in "AI Plus"; and Zenjoy and Mybo in "Global Plus."
In just over three years, Source Code Capital and founding partner Yi Cao have received numerous industry accolades, including: Wealth (China edition) "40 Under 40 Business Elite" 2016; Cyzone "2016 China Angel Investor of the Year"; 36Kr "Top 10 AI Investment Institutions in China" and "Top 10 AI Investors in China"; ChinaVenture-Hurun "Best Venture Capitalist in China 2016"; ChinaVenture "Top 10 Best Investment Institutions in China's Tech-Finance Industry 2016," "Top 20 Best Foreign Venture Capital Institutions," and "Top 50 Best Venture Capital Institutions"; Chuangye Heima "2016 Investor of the Year"; The Beijing News "Top 30 Emerging Investment Institutions of 2016"; and Zero2IPO "Top 50 China Venture Capital Institutions 2015." Source Code Capital also serves as a council member of the National Internet Finance Association of China — the only early-stage investment institution to hold this position.
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